Market Size of Iran Automobile Industry Analysis
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 37.96 Billion |
| Market Size (2029) | USD 59.93 Billion |
| CAGR (2024 - 2029) | 9.57 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Iran Automobile Market Analysis
The Iran Automobile Industry Market size is estimated at USD 37.96 billion in 2024, and is expected to reach USD 59.93 billion by 2029, growing at a CAGR of 9.57% during the forecast period (2024-2029).
The automobile industry in Iran witnessed a decline in growth due to the COVID-19 pandemic and sanctions imposed by countries like the United States on Iran. However, as the government in the country is taking the necessary actions to boost the production of vehicles and parts locally to meet the demand and reduce its import cost simultaneously, the market is expected to witness steady and consistent growth during the forecast period. The major car manufacturers in the country are increasing their production with locally manufactured parts and components. For instance,
- In September 2022, IKCO, the largest car manufacturer in Iran, announced its first electric car for commercial purposes, which is set to be launched in March 2023. The IKCO technology arm Jetco has designed and developed this model with a battery pack of 45 kWh and can travel 300 km on a full charge.
Over the long term, local OEMs and major manufacturers in the country are also entering into agreements and associations with the university and research institutes to upgrade the manufacturing technology related to auto parts and components, which is expected to boost the market during the forecast period further. For instance,
- In October 2022, Six memorandums of understanding were signed between Iran Khodro Industrial Group and Saipa Automobile Group. These agreements cover the supply and purchase of raw materials and parts and establish joint engineering and R&D centers for manufacturing automotive in the country.
With an annual production of more than 1.6 million vehicles, Iran is the world's 20th-largest automaker and one of the largest in Asia. Currently, Iranian manufacturers produce six different types of vehicles: passenger cars, 4WD, trucks, buses, minibusses, and pickup trucks. Passenger cars account for approximately 75% of local output, with pick-up trucks accounting for about 15%.
